What is the most important thing about financial management

Financial Management (Financial

management) is the management of the purchase of assets (investment), the financing of capital (financing), the cash flow from operations (working capital), and the distribution of profits under certain overall objectives.

Western finance is mainly composed of three major fields, namely corporate finance (corporation).

finance), investments, and macro

finance）。Among them, corporate finance is often translated as "corporate finance" or "corporate financial management" in China.

The content of financial management.

1. Financing management.

2. Investment management.

3. Working capital management.

4. Profit distribution management.

The place of financial management in a business.

1. Financial management is based on the objective financial activities and financial relations in the process of enterprise reproduction, and is an economic management work for enterprises to organize financial activities and deal with financial relations with all aspects.

2. Through the management of capital movement and value form, it penetrates into all management fields such as production and operation of the enterprise like blood.

Financing and investment.

Financing is basically divided into two types: one is through the issuance of bonds (i.e., increasing liabilities), and the other is through the issuance of ** (i.e., increasing owners' equity). The development of an enterprise first needs capital, so the first thing in financial management is financing.

In order to ensure that the debt arising from the issuance of bonds can be repaid, or to give high returns to the shareholders who invest in your company. What kind of assets to invest your money in will be the second priority in financial management.

The importance of financial management can be summarized in several aspects: clear accounts, clear minds, careful work, precision, and special sensitivity to accounts.

Three aspects: financing, debt, investment.

Accounting is the foundation.

The main contents of financial management include:: Financial objectives and functions, the concept of valuation, market risk.

and rate of return, multivariate and factor valuation models, option valuation, principles of capital investment, risk and actual options in capital budgeting, etc.

Financial management is about the acquisition of assets, the financing of capital and the cash flow in operation under certain overall objectives.

and profit distribution.

management. The financial management environment, or financial management environment, refers to the general term of various internal and external conditions of the enterprise that have an impact on the financial activities and financial management of the enterprise, and is divided into technical environment, economic environment, financial environment, and legal environment.

Financial management includes: financing management, investment management, working capital management, and profit distribution management.

Financial management refers to the use of management knowledge, skills, and methods to manage the raising, use, and distribution of corporate funds. It is mainly managed in advance and in the matter, focusing on "reason". Accounting refers to the work of continuously reflecting, supervising and participating in decision-making of business activities in the form of funds.

It is mainly in post-accounting, focusing on "calculation".

Enterprises will conduct regular inventory and special management of fixed assets to control the quantity, status and whereabouts of fixed assets in real time. With the operation and development of enterprises, the difficulty of fixed asset management is increasing, and more and more fixed assets are repeatedly purchased or lost, which seriously affects the development of enterprises and reduces the core competitiveness of enterprises in the market economy.

The main contents of financial management are as follows:

1. Financing management, through the absorption of direct investment, issuance of ** and other ways to raise equity capital Kaidong Li Jin, or through borrowing from banks, issuing bonds and other ways to raise corporate debt funds.

2. Investment management, which manages cash outflows for the purpose of recovering cash and obtaining income. Working capital management, keeping a balance of cash and strengthening the management of inventory and accounts receivable. Profit distribution management, determine a reasonable distribution policy, and correctly handle the financial relationship between departments.

3. Financial management is an integral part of enterprise management, and it is an economic management activity that organizes the financial activities of enterprises and handles financial relations in accordance with financial laws and regulations and in accordance with the principles of financial management.

1. Basic theory.

Capital structure theory is a theory that studies the relationship between the way and structure of a company raises funds and the market value of a company.

Modern Portfolio Theory and the Capital Asset Pricing Model (CAPM)Modern Portfolio Theory is a theory about the optimal portfolio.

2. Financial planning.

Financial planning helps companies set guidelines for developing operational and financial plans. Rationalize the company's key objectives and take into account capital investment. The company's goals are translated into tangible financial indicators.

Investment decisions and objectives produce consolidated financial statements that link financial objectives to financial metrics. The entire organization then operates around those goals and metrics.

The main contents include: financial objectives and functions, the concept of valuation, market risk and return rate, multivariate and factor valuation models, option valuation, capital investment principles, risk and actual options in capital budgeting, etc.

Extended Materials. The main links in the financial management cycle include:

1) Make financial decisions, that is, to formulate action plans for various financial problems of the enterprise, that is, to develop project plans.

2) Formulate budgets and standards, that is, formulate plans and standards expressed in specific numbers for various production and business activities in the planning period, that is, formulate plans for the period.

3) Recording the actual reputation index data, that is, recording the actual capital circulation and turnover of the enterprise, which is usually the function of accounting.

4) Calculate the standard that should be achieved, that is, calculate the level of work that should be achieved according to the actual situation that has changed. For example, the standard cost of the actual traffic, the budget limit of the actual traffic, and so on.

5) Compare the standard with the actual, i.e., compare the above two amounts and determine the difference in order to achieve exceptions.

6) Difference analysis and investigation, that is, to conduct in-depth investigation and research on large enough differences to discover the specific causes of differences.

7) Take action, that is, take action according to the cause of the problem, correct the deviation, and make the activity develop according to the established goal.